SanDisk Titanium Cruzer USB drive

Gizmodo recently covered the SanDisk Cruzer Titanium Plus, a 4GB USB drive that stores your data online for $29.99 a year after the 6-month free teaser. Aside from secretly storing data in your g-mail account, what is your opinion regarding online storage?

Is SanDisk asking a fair price at $29.99 a year? In comparison, last year Seagate offered 1GB of storage for $49.95, but now you can barely find any mention of Seagate Internet Drive on the company website.

When you can get a free storage or an email account with over 1GB of data capacity, what do you consider a fair price for online storage?